The district expects to raise $1,483,921 from taxpayers, the
same as last year, and will not increase the tax rate but still had
money to spend.

The state has a school funding law that uses property values and
income levels of resident to determine the supposed "local fair
share" that residents can afford to pay. This is set at almost $9
million in Cape May. When the tax level is below this, which it is
at less than $1.5 million, taxes cannot be reduced. Even if the
teachers did not get the raises, the district could not have
reduced taxes.

Kate Wyatt, president of the Taxpayer's Association of Cape May,
said even without the raises taxes could not be reduced.

"They need to change the state law. It's craziness. We shouldn't
have to spend money if we don't need to spend money. We should
conserve our resources going into the future," said Wyatt.

Jack Wichterman, a member of the TPA, thought the raises were
too high. He said they are more than four percent a year because it
is compounded each year. Wichterman said the tax rate could have
been reduced without the raises, though he also had heard about the
state funding law that would not allow it.

"I think its nonsense, it really is. They should have reduced
it," said Wichterman.

Teachers had been operating without a contract and Zelenak said
the new deal is retroactive to the school year that began July 1,
2009. Teachers get four percent raises for the 2009-2010,
2010-2011, and 2011-2012 school years. Zelnak said there are about
25 teachers at the K-6th grade school here on Lafayette Street. The
budget does not anticipate any need to cut staff.

"It was a year of negotiating and the reason that agreement was
awarded is because the teachers are in the low one-third of
salaries in Cape May County," Zelenak said.

Zelenak said the proposed $3,976,423 budget, up from $3.4
million last year, would carry a tax rate of 6.7 cents for each
$100 of assessed valuation, the same as last year.

The district gets federal funding for a large and rising number
of Coast Guard children, about 80 percent of a student body of 182
pupils. Zelenak said the district is expecting about $860,000 this
year in federal aid. The district is getting $374,241 in state aid,
a drop of $155,000.

"I do feel we run a tight ship here. We've been frugal over the
years," said Zelenak.

The Taxpayers Association of Cape May is not objecting to the
teacher raises.

"If they're in the bottom third it makes sense but let's get the
state law changed that says you have to spend money. Show me the
numbers and make the right decisions," said Wyatt.